Wisconsin Gov. Scott Walker signed an update to the state’s self-storage lien law on April 17 that allows facility operators to send lien notifications via e-mail and reduces the number of notices in newspapers from two to one. Assembly Bill 469 (AB 469) also provides provisions under which operators may have vehicles removed without delinquent tenants’ permission and authorizes operators to sell tenant insurance. Operators may also charge late fees after five days of delinquency rather than five weekdays. All updates go into effect on July 1.

Per the new bill, lien notifications can be sent via e-mail only if there’s confirmation of receipt. Operators may also use mailing methods other than the U.S. Postal Service as long as the service provides evidence of mailing, according to an explanation of changes posted by the legislature. The new law also removes the requirement that notices contain a general description of the tenant’s belongings being stored; however, operators must provide photographs or video of unit contents if requested by the tenant.

Lien sales may now be conducted online as long as the auction website “is reasonably expected to attract bidders.” The measure also gives operators the ability to postpone a live auction if there’s inclement weather on the day of the event.

The updated language also changes how operators must handle proceeds from a lien sale. Any profits must first be applied to satisfy the lien, with any balance returned to the tenant. If the tenant can’t be located, operators must provide the balance to the secretary of revenue.

Operators will now be able to have vehicles towed after more than 60 days of delinquency at the vehicle owner’s expense, without his permission. They must, however, provide the tenant with two default notices, with the second sent after delinquency reaches 60 days.

The tenant-insurance provision allows operators to provide customers coverage through a group or master commercial policy.

AB 469 was supported by the Wisconsin Self Storage Association and national Self Storage Association.

Sources:
Wisconsin State Legislature, Assembly Bill 469
The Monday Morning Globe 4/23/18, SSA, Wisconsin and Nebraska Score Big Legislative Storage Victories

Update 4/24/18 – The Supreme Court of California ruled unanimously yesterday that self-storage tenant-protection plans don’t constitute insurance. In Heckart v. A-1 Self Storage Inc., the court determined the protection plan available to the plaintiff was “purely incidental” to the rental agreement and adjusted risks between A-1 and its tenants, meaning A-1 indemnified Heckart, not a third-party such as an insurance carrier.

In coming to a decision, the court applied a “principal object and purpose test” to determine whether protection plans fell under Article 22 of the California Insurance Code, which defines insurance as “a contract whereby one undertakes to indemnify another against loss, damage or liability arising from a contingent or unknown event,” according to a source.

“A-1 assumes risks that arise directly from the rental relationship, and it does not provide indemnification beyond damages that might occur to property while it is stored in the rented space,” wrote Chief Justice Tani G. Cantil-Sakauye, who authored the court’s opinion. “Therefore, the protection plan has no purpose independent of the rental agreement, and is purely incidental to the rental agreement.”

The court also pointed out that the protection plan was optional and extended “only to risks over which A-1 has some control, such as fires, roof leaks, criminal activity and damage to the building. A-1 can reduce these risks by taking steps to prevent fires or the spread of fires, to increase security, and to strengthen the building. Therefore, the protection plan serves an additional purpose of providing an incentive to minimize the risks to stored property.”

The justices also concluded that the “significantly” lower cost of the protection plan illustrated that the principal purpose of the transaction between Heckart and A-1 was for the rental of storage space.

In its opinion, the court rejected the CDI’s interpretation of Article 16.3 of the insurance code, which argued the legislature could regulate protection plans as insurance. “The protection plan does not constitute insurance subject to regulation under the insurance code,” Cantil-Sakauye wrote. “The legislature’s enactment of Article 16.3 enables self-storage facilities to act as agents for insurance companies with respect to the narrow category of insurance described in Article 16.3, but it does not prohibit the parties’ indemnification agreement set forth in the protection plan. Because plaintiff’s claims are premised on his contention that the protection plan is subject to regulation under the insurance code, his claims fail.”

The protection plan offered by A-1 provides $2,500 in protection for $10 per month, according to its website.

“The ruling affirms the lower courts’ decision that tenant protection is not insurance,” noted Jacquelyn Nash, director of On The Move Insurance Agency, which offers a tenant protection plan to self-storage operators. “We would like to thank both Brian Caster of A-1 Self Storage and Deans & Homer for vigorously defending tenant protection on behalf of the entire industry since April 2013. We could not be happier with this positive ruling and would also like to thank our customers for weathering the storm with us.”

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10/5/17 – Providers of self-storage tenant-protection plans received a potential blow last month when the California Department of Insurance (CDI) changed its previous stance on the definition of these programs in a legal brief filed in connection to the case Heckart v. A-1 Self Storage Inc., which is currently before the state supreme court. At issue is whether protection plans constitute insurance.

In the brief filed Sept. 12, CDI reversed its “previous and long-standing legal position” that protection plans didn’t equate to tenant insurance, according to a statement released by Deans & Homer, the insurance underwriter, agent and broker that provided A-1 with its template for selling protection plans.

“The specific issue before the court is does a self-storage facility’s storage rental agreement offering an addendum under which the facility assumed liability for damage to stored property constitute insurance subject to regulation under the insurance code when the principal object of the agreement between the parties was the rental of storage space rather than the shifting and distribution of risk?” Deans & Homer officials said.

An Oct. 3 filing in rebuttal to the CDI brief by attorneys from Sheppard Mullin Richter & Hampton LLP, the law firm representing A-1 in the case, discredits the CDI’s contentions, arguing that "the commissioner's views in the amicus curiae brief are not entitled to deference because no position or argument in the brief is grounded in the commissioner's expertise, technical knowledge or experience. Nor does the commissioner offer any facts that might assist the court in evaluating the dispute from a public policy perspective."

The A-1 brief also notes the California legislature hasn’t taken any action to regulate protection plans and implores the court to reaffirm the December 2015 decision by the California Court of Appeal, which determined that the rental agreement and addendum in the A-1 case didn’t constitute insurance regulated under the state’s insurance code. “The addendum was dependent on the rental agreement whose principal object was the rental of storage space. Thus, the storage facility that offered the addendum did not engage in the unlicensed sale of insurance,” justice James A. McIntyre wrote in the court’s opinion.

“These determinations are in line with other cases in which courts have long affirmed the right of contracting parties to allocate risk within their agreements when incidental to the principal object of such agreements,” Deans & Homer officials said. “Deans & Homer respectfully disagrees with opinions expressed by the California Department of Insurance in its amicus brief, and it strongly believes that the fundamental legal tenets that led to the development of this program are valid. Deans & Homer continues to believe that the protection program does not constitute insurance.”

The lawsuit was filed by tenant Samuel Heckart, who rented a unit from A-1 in July 2012. “The protection plan reiterated terms of the rental agreement, including that the tenant assumed the sole risk of loss or damage to stored property, A-1 was not liable for loss or damage to stored property, and the tenant must insure his or her stored property,” McIntyre wrote. The protection plan also stipulated that Heckart could pay $10 per month to have A-1 retain the liability for loss or damage to his property up to $2,500. Heckart initialed the plan’s option to decline participation in the plan and acknowledged he was covered by his own insurance plan, according to the lower court’s ruling.

Protection plans began to emerge in 2002 as an alternative to traditional self-storage tenant insurance. They’ve been used widely by facility operators in states that haven’t granted storage businesses limited-lines licenses to sell tenant insurance. Among the biggest difference between coverage types is protection plans are a contractual relationship between the tenant and the storage operator, not the tenant and an insurance carrier.

Deans & Homer developed the concept of protection plans for the self-storage industry “after consultation with the legal division” of the CDI, according to the company’s statement.

"The protection agreement is not insurance, it is not a warranty, and does not require the owner/operator to have an insurance license," according to Ted Dobbs, protection sales leader for Deans & Homer. "The agreement is part of the rental agreement and is simply the transfer of some limited liability for loss or damage to stored property back from the tenant to the owner in exchange for additional rent. The facility owner may retain all of the potential liability created by this agreement, or they may transfer part of or all of that risk to an insurance company by purchasing a separate policy of contractual liability insurance."

Based in Phoenix, Deans & Homer has more than 35 years of experience insuring the self-storage industry. The firm offers programs specifically for the protection of facility owners and tenants, including a package policy to protect the facility, direct mail-in tenant insurance and tenant-protection programs.

Sources:
Supreme Court of California, Heckart v. A-1 Self Storage
The Recorder, Self-Storage Company’s “Protection Plan” Was Not Insurance Subject to State Insurance Code, California Supreme Court Rules
Court of Appeals of California, Fourth District, Division One, Heckart v. A-1 Self Storage
Inside Self-Storage, Self-Storage Protection Plans: Helping Tenants and Facilities Manage Risk

Inside Self-Storage (ISS) has released a new installment to its Sounds of Storage podcast series titled, “NSAT Executive Tamara Fischer Shares Self-Storage Secrets to Success.” The five-minute interview with the executive vice president and chief financial officer (CFO) for National Storage Affiliates Trust discusses the company’s unusual structure of participating regional operators (PROs), the philosophy behind its growth strategy and its long-term goals. Fischer, who will assume the president’s role on July 1, discusses why NSAT’s corporate structure has allowed it to scale so quickly, where the company sees its biggest opportunities moving forward, and how it views the end game for its PROs.

This audio and others in the series can be accessed by visiting the ISS podcasts page.

Fischer has been CFO at NSAT since the company’s inception in 2013. She previously served as executive vice president and CFO at Chateau Communities Inc. and Vintage Wine Trust Inc., REITs specializing in the manufactured-home and wine sectors, respectively.

NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. Its business model has allowed it to amass a portfolio of 540 properties in 29 states comprising 34 million net rentable square feet. It ranked as the No. 5 facility owner and as the No. 4 facility-management company in the ISS 2017 Top-Operators Lists.

For more than 27 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Update 4/24/18 – Giesbrecht was denied bail on Friday and will remain in custody until her appeal can be heard, according to the source. In his decision, Manitoba Court of Appeal Justice Michel Monnin noted the case is unprecedented and Giesbrecht was found guilty of serious crimes. He was also concerned about her request to live at home if she were granted bail.

Giesbrecht’s lawyer argued that his client’s sentence was harsh and she should be granted bail while awaiting the appeal. The court stated the sentence was reasonable and the grounds for appeal are frivolous, the source reported.

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2/7/17 – A judge has convicted Andrea Giesbrecht on six counts of concealing the body of a dead child. Provincial court judge Murray Thompson ruled Giesbrecht purposefully hid her pregnancies and delivery of the infants. Though the defense argued the woman put the bodies in the self-storage unit to keep them, Thompson said failing to pay rent and registering the unit under her maiden name with an incorrect address indicated otherwise, according to the source.

“All of her actions lead to one conclusion: that Giesbrecht was aware that these children were likely to have been born alive and she wished to conceal the fact of their birth,” Thompson said in his ruling.

The judge also said Giesbrecht understood pregnancy and delivering babies because she had two children born in hospitals. She also had 10 legal abortions, the source reported.

Giesbrecht wasn’t charged with killing the children. Though Thompson said the infants were likely born alive, medical experts couldn’t determine their causes of death. Some of the bodies were badly decomposed when they were discovered, according to the source.

Each of the six counts of concealment carries a maximum sentence of two years in jail.

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7/19/16 – The trial of Andrea Giesbrecht, the woman accused of concealing the remains of six infants in a U-Haul self-storage unit, has resumed after a two-month hiatus due to scheduling conflicts. Giesbrecht’s son, whose name is being withheld due to a publication ban, testified on Monday that he didn’t recall seeing his mother pregnant or notice changes in her weight, according to sources.

Before Giesbrecht's son took the witness stand, her husband and the boy’s father, Jeremy Giesbrecht, held up proceedings for about 10 minutes while arguing with prosecutors. “We have a right not to answer your questions," he said before leaving the courtroom.

A forensic biologist testified in April that the child remains have been linked to DNA found on a soiled sanitary napkin found in the Giesbrecht home. Jeremy Giesbrecht was also determined to be the biological father of the infants, sources reported. Two medical experts previously testified that some, and perhaps all, of the babies were likely born alive.

Giesbrecht’s son testified his parents had a rocky relationship and sometimes separated. Women who visited the house sometimes had to use the bathroom in the master bedroom due to plumbing issues in the guest bathroom, he said. When asked if his father ever had girlfriends stay at the house, the son said, “Not that I know of.”

The court also heard testimony from Karen Bodoano, operations manager with Sentinel Self Storage. Bodoano testified Andrea Giesbrecht had rented a unit from 1999 to 2008 and was frequently late with payments. She rented from Sentinel a second time in 2010.

When asked by defense attorney Greg Brodsky if she had ever seen the contents of Giesbrecht’s unit, Bodoano confirmed she had. "It was an anomaly that there was few items in the storage unit, so it stood out," Bodoano said. "I saw two totes with their lids, and I saw a pail on the right-hand side of them."

The description resembles the plastic bins and pails found inside the U-Haul unit, sources reported.

Bodoano also testified Giesbrecht had told Sentinel employees she needed the unit to store items she couldn't keep at home, such as jewelry.

Jeremy Giesbrecht is expected to testify later this week.

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10/22/14 – Police have arrested a woman in connection with the discovery of six infant corpses found this week in a self-storage unit in Winnipeg, Manitoba, Canada. Andrea Giesbrecht, 40, has been charged with six counts of concealing a child's body, with additional charges possible upon autopsy results, according to police. Employees at the U-Haul Moving & Storage facility at 175 McPhillips St. found the bodies on Monday while inspecting the unit after Giesbrecht defaulted on rent payments, according to news sources.

Police said forensic examination confirmed six bodies were found, after officials initially believed the remains amounted to three or four, according to Winnipeg police spokesman Const. Eric Hofley. Court documents indicate the bodies were stored sometime between March 7 and Oct. 20, according to the “Winnipeg Free Press.”

Autopsies will be performed to determine the causes of death, but Hofley indicated the results could take months. Forensic work is also being conducted to determine if the infants were related and their relation, if any, to Giesbrecht. Investigators believe all six of the babies were newborns. No other suspects are being considered, but Hofley said that could change as the investigation continues.

"U-Haul team members made a disturbing discovery when taking inventory of a delinquent storage locker on Monday,” said Razmin Mansoub, marketing company president for U-Haul Co. of Central Canada in a released statement. “They immediately contacted law enforcement, who believed the locker contained human remains. U-Haul is deeply shocked and saddened by this discovery."

The state of the remains is what caught the attention of facility employees when they inspected Giesbrecht’s unit, Hofley said. U-Haul will continue to cooperate with the police investigation, Mansoub said.

Giesbrecht, who also goes by Andrea Naworynski, was also charged with breach of a probation order stemming from fraud charges issued in 2012. Her attorney, Greg Brodsky, is expected to be in court on Thursday to try to set a bail-hearing date, the “Winnipeg Free Press” reported.

Anyone with information regarding the case is encouraged to contact police at 204.986.3296 or via Crime Stoppers at 204.786. 8477.

Sources:
Canoe.com, Winnipeg Woman Guilty of Hiding 6 Dead Babies in Storage Locker
CBC News, After Husband's Public Outburst, Andrea Giesbrecht's Son Testifies He Never Saw His Mother Pregnant
Clearwater Times, Bail Denied for Woman Who Kept Remains of 6 infants in Storage Locker
CTV Winnipeg, Police Investigation Finds Bodies of 6 Babies in Storage Locker, One Woman in Custody
Global News, Andrea Giesbrecht’s Son Testifies in Dead Babies Case; Husband Yells at Lawyers
Winnipeg Free Press, Woman Arrested After 6 Dead Infants Found in Storage Locker

The Lock Up Self Storage, which operates 45 sites in eight states, has opened its largest facility nationwide, located in Lakeview, Ill. The property at 3705 N. Lincoln Ave. previously housed a factory. The Lock Up converted the existing structure and added a four-story structure to the parcel. The two buildings total 112,700 square feet of storage space in 1,400 climate-controlled units, according to a press release.

The facility includes electronic gate access, two drive-in loading bays, carpeted interior hallways and units, elevators, video cameras, and motion-sensor lighting. Customer amenities include free use of the company moving truck for new rentals, a free lock, online billpay and reservations, and access to the company’s mobile app. The office has a retail store that sells moving and packing supplies, and staff will accept deliveries on behalf of customers.

“In order to best serve the storage needs of the bustling neighborhoods of North Center, Roscoe Village and the many pockets of Lake View, we knew our clients would need a lot of options,” said Andrea Carnes, vice president of operations.

A ribbon-cutting ceremony, held on April 19, included property tours and refreshments. Members of the community and the Northcenter Chamber of Commerce were in attendance, the release stated.

Founded in 1976, Lock Up owns and manages more than 3 million square feet of storage space in Connecticut, Florida, Hawaii, Illinois, Massachusetts, Minnesota, New Jersey and New York.

Source:
PR Web, Announcing the Chicago Grand Opening of The Largest Lock Up Self Storage Facility

Everbrite Inc., which provides restoration coatings and cleaning products for self-storage metal doors and buildings, has hired CJ Steen as an inside sales representative. Steen joins the company from On The Move Inc., a truck-rental company founded by her grandfather in 1992, where she served marketing director for more than a decade.

Steen grew up in the self-storage business. Prior to founding On The Move, her grandfather built his first storage facility in the 1970s. She formally got her feet wet as a relief manager at her parent’s storage facility in Boerne, Texas.

Prior to her position at On The Move, Steen worked in sales for several companies. She holds an MBA from Texas Woman’s University.

Based in Rancho Cordova, Calif., Everbrite has provided its restoration products for self-storage doors and interior metals for more than 25 years.

Source:
Everbrite, Steen Joins Everbrite in New Sales Role

Diversified real estate firm 10 Federal is looking to tear down a former strip club in Graham, N.C., and build a self-storage facility in its place. If approved, it’ll be the company’s second location in the city.

Plans for the 6.7-acre property at 1579 Bakatsias Lane include five storage buildings. 10 Federal purchased the site in December from David Morton, who had acquired it in 2016. “I bought it and cleaned it up, and I am 99 percent sure I already have it sold,” Morton said at the time. “I got tired of looking at it, sitting there on the side of the highway.”

Dockside Dolls was closed in 2006. At the time, the club was being investigated for illegal activity, and owner Jerry Golding was facing a nuisance-abatement lawsuit filed by Alamance County, according to the source.

Last month, 10 Federal opened a new facility in Raleigh, N.C. The five-story property is in the historic Five Points neighborhood, a cluster of suburban developments that were built in the early 1920s. The company also recently acquired two properties in Durham and Lowell, N.C.

Based in Raleigh, N.C., 10 Federal acquires, develops and manages multi-family and self-storage properties in North Carolina. It has 11 self-storage facilities in its portfolio. Integrating technology into its operation is a core tenet of the business, according to the company website.

Source:
The Times-News, Former Dockside Dolls Building to Be Torn Down

Self-storage is a lucrative business, and it can be easy to adopt a position of comfort and lose sight of the big picture. Perhaps the most important area of facility operation on which every owner needs to be laser-focused is revenue management. Often, owners aren’t aware they need to take action until their property is underperforming. Follow these guidelines to create a revenue-management program that will yield positive results.

An Aggressive Program

The first step in turning around any underperforming property is to implement an aggressive revenue-management program. By doing so, it’s typical to see an increase in gross revenue of 18 percent or more in the first year.

What’s an aggressive program? Think of revenue management as a three-legged stool. For the stool to remain level, all three legs must be the same length; otherwise the seat is out of balance and money will roll off onto the floor. We don’t want that.

Let’s examine the three legs: occupancy, rate management and rent increases. While focusing on any of one these may improve revenue, each should be built equally, creating a balanced approach. First, consider where you want to be in your market. When it comes to raising rates and sending rent increases, fear can become a major factor and one that must be contained. Maximizing revenue takes courage and tough decisions.

Everyone wants to be a market leader. Becoming one takes effort. You must work harder than your competitors. You must train staff to be better business managers and commit to maintaining your properties for cleanliness and overall condition. If you ask customers to pay you more than a competitor, there must be a compelling reason behind it.

Occupancy

Self-storage operators often think they want their properties to be 100 percent occupied. This is flawed thinking. While there may be short-term situations in which your properties reach 100 percent, such as hurricanes, students storing for the summer or some other seasonal rush, maintaining occupancy that approaches 100 percent can be damaging to continuing revenue opportunities.

Being full is like having a store with empty shelves—you have no inventory to sell. If we can’t meet a customer’s needs, he goes elsewhere. All the money spent marketing to get that customer through the door is wasted.

Begin thinking about each unit type as a product on a shelf. For example, you may have drive-up 5-by-10s, interior 5-by-10s and climate-controlled 5-by-10s. These are three different products, and you should always have one or two of each type available so you never risk losing a potential customer by not having what he needs.

If optimum occupancy is in the 85 percent to 95 percent range, how do you maintain that level? Remember, occupancy is one of three legs of the revenue-optimization stool. It determines how rates are set and how aggressive you are with rent increases. If occupancy is low, rates should be low when compared to competitors, and you should be conservative with rent increases. When occupancy is high, rates should be higher than competitors and increases should be more aggressive.

While the primary focus here is on overall facility occupancy, look for exceptions. A site may only be operating at 70 percent occupancy overall, but could be 100 percent occupied on 10-by-10 units. While that means it’s probably time to look at lower rates on other sizes, for 10-by-10s, you want to be leading the market on price and giving these customers rent increases.

Rate Management

Correct pricing is critical to overall success. Here’s a simple truth: If prices are too high, occupancy will suffer. If prices are too low, you’re leaving profit on the table. Let’s look at some examples for making sound rate-management decisions.

In Scenario 1, 5-by-5 units are priced mid-range of your competitors. Let’s say we’ve had this rate for 60 days and demand tracking shows 10 inquiries and six rentals for a 60 percent capture rate. While that capture rate is low, you only have two available units and two competitors with higher rates. If you keep the rate at $32, you’ll be losing money on those last two spaces. In this case, a $5 increase to $37 is warranted. You’re still $3 below your highest competitor but have increased revenue potential on those two units by more than 15 percent.

Now let’s look at a Scenario 2, with 16 available units and only 80 percent occupancy. Take a close look at the capture rate. You’re on the low end, but you’ve got quite a few spaces not bringing in revenue. If you discover, through tracking demand and capture, that over the past 60 days you’ve been capturing only 60 percent—even though this is at the bottom end of market rates—consider dropping even lower. It’s all about balance. When you’re below 85 percent occupancy or have more than about five spaces available, capture rate becomes more important than price. Low revenue is better than no revenue.

On the other hand, if over the past couple of weeks you’ve had a capture rate of 80 percent or more, consider a small bump in rates. Watch closely and be prepared to drop the rate back down if you start missing opportunities.

The key to rate management is quick reaction to trends. When occupancy is high, inflate rates to maximize revenue even if it means missed opportunity. When occupancy is low, focus on capture rate. Stay above 80 percent. When capture is high, see if the market will support higher rates. When capture is low, adjust prices down to avoid missed opportunities.

In Scenario 3, we have half our inventory of 5-by-10s making zero revenue. We’re more or less in the middle of market pricing. Indication would be to lower the rate and, in most cases, that would be correct.

Remember, low revenue is better than no revenue. Let’s get those 50 empty spaces producing. Maybe we initially drop this rate to $47. Through tracking we find we still only capture about 50 percent of our opportunities. A competitor is $45, so I recommend something drastic—say dropping to $37 or $39 to achieve a capture rate of 80 percent or more. Don’t lose opportunities with this many spaces available. Once capture rate and space-type occupancy are above 80 percent, then we begin to raise rates back up to match or surpass competitors.

Rent Increases

Mention rent increases to a manager who’s not trained in revenue optimization and you get a “deer in the headlights” reaction. When customers receive rent increases, they complain. Many threaten to move out, but very few actually do.

Here’s the thing many people have a difficult time wrapping their brain around: Sometimes, having a customer vacate is a good thing. Let’s say the current rate on a unit is $99 and you’re at or near 100 percent on that space type. The customer is only paying $72, and you issue a $7 increase, which is slightly less than 10 percent. If that customer does in fact vacate, you’re going to re-rent that space to someone at $99 for a revenue increase of $27.

Can rent increases be damaging to your business? Absolutely, but not if you’re sensible about making them work for you, not against you. I have a few “rules of thumb” when it comes to rent increases:

• Avoid excessive surges. Keep rent increases to less than 10 percent of the customer’s current rent.
• If space-type occupancy is low, don’t increase. If a space type is below 80 percent, think twice before giving increases. Remember, low revenue is better than no revenue.
• Don’t raise rent on new customers. You’re trying to build a relationship and develop them into long-term customers. Sending an increase to a customer who’s rented with you for less than six months sends the wrong message.

Putting It All Together

When you cut through the minutia and boil it to its essence, our mission is simple: Generate maximum revenue. We work hard to meet customers’ needs and provide a well-maintained property with exceptional customer service. In return, we want to build a company in which we maximize potential, providing higher revenue. This three-pronged approach of occupancy, rate management and rent increases will enable any storage property to its maximize potential revenue.

Monty Rainey is owner of RPM Storage Management LLC, a Texas-based third-party management company that performs self-storage feasibility studies, due diligence, staff hiring and training, and more. Prior to launching RPM in 2014, Monty served as a district manager for a self-storage real estate investment trust and property-management firm. In his career, he’s led the successful management of more than 100 properties in Colorado, Oklahoma and Texas. For more information, call 830.832.9496; visit www.rpmstoragemanagement.com. 

Enhancing your self-storage operation’s user experience can significantly improve and influence a customer’s purchasing journey. All interactions with your business are part of that experience: finding your facility during online search, seeing the property for the first time, speaking with staff, etc. Facilities that provide a great customer experience win loyal fans who share their happiness with family and friends, and write flattering reviews that create a tidal wave of new renters.

It’s estimated that Americans spend 37 billion hours waiting in lines each year; that’s roughly 118 hours per person. Here are a couple of other interesting facts:

• On average, people overestimate how long they've waited in line by about 36 percent, according to “The New York Times.”
• A Harvard Business Study publicized by Forbes.com revealed that not only do people hate standing in lines, they’re “last-place averse,” altering their preferences and behaviors to avoid being at the end of them.

Time is a precious resource, and no one wants to stand in line when there’s a faster alternative. When considering your customers’ experience, what are you doing to help them skip the line? Are you enabling them to self-serve when your team is busy or unavailable? Doing so is respectful of their time and helps them complete their tasks quicker. Brands that embrace this on-demand mentality are easily beating their competition. Let’s explore the technology available to better serve your future and current self-storage tenants.

Online Rentals

At my self-storage operation, we give our customers options. When they visit our website during the “researching a need” phase, they can reserve or rent a unit online. We break the process into small, easy steps so customers can complete the task at their own commitment and time level. They move through the process at their own pace, providing more information until they finalize the rental. We encourage this on the website with the verbiage, “Save time at the office and complete your information now.”

We’ve also found great success with our industry-specific, multi-channel communication platform. When a prospect calls the office to inquire about reserving a unit, we ask if we can text him a quote and any information we discussed on the phone. We can also send him a Google Maps link with directions to our facility. If he decides to rent, we use software to text him a lease he can digitally sign. This is another offering that allows customers to rent a unit from the comfort of his smartphone.

Payment Options

We also offer customers multiple options for paying their monthly bill, and send automated past-due rent reminders via text for ultimate convenience. The message includes a link the customer can click to immediately log into his account, press a button and submit payment. There’s no need for a username or password—two clicks and his payment is done!

Customers also have the option every month to check a box and sign up for autopay. Then there’s no need for them to hunt down their credit card, write and send a check, or visit the office to fork over a payment. Additionally, they can pay their bill on our website.

Kiosks

Kiosks are another way for customers to serve themselves. We see them everywhere now, for example, at the airport, where travelers use them to check in for their flights, print boarding passes and even rent a car. There are kiosks that sell electronics, makeup and even cupcakes. They’re becoming so widespread that we even see them on restaurant tables to help speed up the ordering and check-out process.

Some self-storage operators offer kiosks 24/7 for customers who’d like to rent a unit or pay their bill. Some facilities are simply using a tablet, with their own website serving as the “kiosk.” If they’re already offering online rentals and billpay, this is an easy, do-it-yourself hack that can help customers serve themselves. It can also remind tenants that these options are available to them via the convenience of their phone.

Vending Machines

Some self-storage operators are using vending machines to sell locks, packing tape, box labels, markers—you name it. Ideally, the manager would be able to assist the customer in purchasing retail products, but in those times when someone is unavailable, it’s helpful to provide these options. Should a line situation arise in your office (good for you, bad for customers), these machines give them something to do to circumvent boredom and will potentially create an impulse buy.

Mobile Apps

Some storage facilities offer mobile apps that house all the tenant’s information, such as unit number, gate code, billing information and more. On those frequent occasions when customers forget their unit number or gate code, the app can help them serve themselves rather than forcing them into the office to hunt down a manager.

All these self-serve technology applications make life easier for self-storage staff and customers. Anything that’s a win-win is something you should quickly and eagerly adopt to help your business stand above the competition.

Phil Murphy is the president of Next Door Self Storage, which owns 14 facilities in Illinois. He’s also the founder and president of CallPotential, a technology firm designed exclusively for the self-storage industry. The company’s products seek to automate and streamline sales, marketing, collections and rentals into a single platform, do-it-yourself call center and SmartKiosk. For more information, call 877.552.2557; visit www.callpotential.com.